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Our Bureau

Exports contribute to 16 pc of total turnover

Mumbai , July 25

Tata Motors has reported 40 per cent rise in profit after tax for the first quarter ended June 30 at Rs 381.85 crore against Rs 272.67 crore in the year-ago period.

The company's revenues (net of excise) were up by 48 per cent at Rs 5,783.41 crore (Rs 3,907.50 crore).

Sales volume for the quarter (including exports) at 1,26,394 vehicles grew by 44 per cent over 87,492 vehicles in the corresponding period last year. Exports contributed to 16 per cent of the total turnover with 45 per cent growth (9,073 units). Though there has been a growth in exports (Rs 14.5 crore), EBITDA margins have been impacted through forex loss of Rs 78 crore. During the quarter, the company has reversed export incentive of Rs 35.57 crore that accrued during the previous year in view of reduction with retrospective effect in the incentive rate under Target Plus Export Incentive Scheme.

Domestic sales for passenger cars posted a growth of 22 per cent with 50,151 units though commercial vehicles sales were significantly impacted due to delay in vehicle certifications and procurement of some critical components. During the quarter, commercial vehicles sales stood at 74,761 units.

The company said margins are under pressure due to unstable market conditions, hike in material costs and lending rates. ``Margins for the quarter stood at 11.01 per cent compared to 12.4 per cent for the last quarter,'' said Mr Praveen Kadle, Executive Director, Finance and Corporate Affairs.

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More Stories on : Financial Performance | HCV/LCV/Tractors | Tata Motors Ltd

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